Hyperliquid traders are pricing CXMT shares as much as 575% above their official IPO level ahead of the Chinese memory chipmaker’s Shanghai market debut.

A perpetual futures contract launched by Trade.xyz climbed as high as $8.64 on Wednesday, compared with CXMT’s offer price of 8.66 yuan, or about $1.28 per share. The contract implied a valuation of roughly $500 billion for the company.

The premarket surge reflects expectations that CXMT could record a major gain when its shares begin trading in Shanghai.

A rise of around 330% from the offer price would make CXMT the largest publicly traded company in mainland China, surpassing Industrial and Commercial Bank of China’s market value of about 2.5 trillion yuan.

The Hyperliquid contract allows traders to take positions on CXMT’s expected share price before the company completes its public debut, creating a global market for speculation around one of China’s most anticipated technology listings.

CXMT opened books for an IPO that could raise as much as $9.8 billion, making it the second largest offering in mainland Chinese history.

The Hefei based company sold 7.69 billion shares, including 1 billion shares issued through an over allotment option, at 8.66 yuan each. The deal gives CXMT an initial market value of approximately 580 billion yuan.

Retail demand for the offering was intense. The retail portion was 212 times oversubscribed after a clawback mechanism, with individual investors submitting 9.4 million orders, according to a Thursday filing.

CXMT is expected to generate net income of around 100 billion yuan this year. At its IPO valuation, the company is priced at about 5.9 times projected 2026 earnings, compared with a consensus multiple of roughly 20 times.

The relatively low offering multiple has fueled expectations of a sharp first day rally.

Mainland Chinese IPOs have delivered strong early returns in recent years. Offerings that raised at least $100 million over the past two years gained an average of 248% during their first trading session.

CXMT is the world’s fourth largest producer of dynamic random access memory chips, which are used in smartphones, computers, artificial intelligence servers and data centers.

The company has become central to Beijing’s effort to reduce its reliance on foreign semiconductor suppliers, particularly in high bandwidth memory, a key component for artificial intelligence infrastructure.

A successful listing could strengthen momentum for other major Chinese technology companies considering public offerings, including rival memory chipmaker Yangtze Memory Technologies, Baidu’s chip unit Kunlunxin and artificial intelligence developer DeepSeek.